Not Everyone Was Applauding Obama, Otellini

Obama and Otellini in Oregon–all those “Os” seemed to spell agreement on a broad range of tech-policy issues when the president toured Intel’s facility west of Portland on Friday. But there was one small sign of discord, and trade with South Korea was the topic.

A few dozen protesters gathered just outside Intel’s property in Hillsboro, in advance of speeches inside the company’s campus by President Barak Obama and Intel CEO Paul Otellini. Arthur Stamoulis of the Oregon Fair Trade Campaign denounced both for their support of a US-South Korea free trade pact, a draft of which the president is expected to send to Congress this month for ratification.

Many Democrats and Republicans support the measure, as do many big businesses like Intel–which books three-quarters of its revenue offshore. But three-quarters of its chips are fabricated in the U.S., the company argues, and exports mean jobs–so any measure that could help build a market for U.S. goods in South Korea is a good thing.

“Intel supports the President’s efforts to double exports,” said Tom Waldrop, an Intel spokesman. He added that while the free trade agreement with South Korea is “not perfect,” it does enough of the things it is supposed to do. Intel believes it deserves support, Waldrop said.

The protesters weren’t buying it. They said that even in Oregon’s high-tech corridor competition from Asia threatens jobs.

Stamoulis cited an April 2010 study commissioned by the Alliance for American Manufacturing, that showed Oregon’s 1st Congressional District, which is home to Intel and the state’s so-called “Silicon Forest,” lost a net 14,600 jobs due to imbalanced trade with China between 2001 and 2008, the period after Congress voted to allow China to join the World Trade Organization. The job loss represented 3.76% of the district’s total employment, making it one of the hardest hit in the entire nation, Stamoulis said.

“There’s a clear track-record of trade-related job loss in Oregon’s high-tech sector due to past trade policies. Passing the Korea Free Trade Agreement will only continue that trend,” he added. “People are having a hard enough time finding decent work without our elected officials making things even harder.

“It’s a message that the President and members of Congress need to hear. What’s good for Intel might not necessarily be good for Intel employees.”